Uber Rival Karhoo Closes Amid ‘Dire’ Financial Problems
- Karhoo statement says effort to find new investors failed
- New management was brought in as staff worked without pay
Light trails are made by traffic .
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
A car-hailing service that claimed to raise $250 million and had ambitions to rival Uber Technologies Inc. is closing down less that two years after opening. Some are now questioning how much money the company ever had.
The company, Karhoo Inc., made a price-comparison app for car-hire services. It operated in a number of U.K. cities, and had opened offices in London, New York, Singapore and Tel Aviv. Despite the startup’s large ambition, customers never flocked to the service and the company said Tuesday that it ran out of money.